EconPapers    
Economics at your fingertips  
 

A Safe Harbor: Wealth-Income Ratios in Switzerland over the 20th Century and the Role of Housing Prices

Enea Baselgia () and Isabel Z. Martínez ()
Additional contact information
Enea Baselgia: University of St.Gallen, Switzerland
Isabel Z. Martínez: KOF Swiss Economic Institute, ETH Zurich, Switzerland

Authors registered in the RePEc Author Service: Isabel Martínez ()

No 20-487, KOF Working papers from KOF Swiss Economic Institute, ETH Zurich

Abstract: We estimate the ratio of private wealth to national income, βpt, for Switzerland over the period 1900–2018. Our results indicate that the development of βpt in Switzerland did not follow a U-shaped pattern as in most European countries, but that the evolution was extraordinarily stable, with βpt oscillating around 500% over most of the 20th century. However, the wealth-income ratio has been on the rise since the turn of the century to reach 721% in 2017 – an unprecedented level in the past. This considerable increase is mainly driven by large capital gains in housing wealth since 2010. We present new cross-country evidence that capital gains in housing wealth have become an important driver of rising wealth-income ratios in a series of developed economies.

Keywords: wealth-income ratio; income distribution; economic growth; housing prices (search for similar items in EconPapers)
JEL-codes: D31 D33 E01 N34 (search for similar items in EconPapers)
Pages: 77 pages
Date: 2020-12
New Economics Papers: this item is included in nep-eur, nep-his and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.3929/ethz-b-000458727 (application/pdf)

Related works:
Working Paper: A Safe Harbor: Wealth-Income Ratios in Switzerland over the 20th Century and the Role of Housing Prices (2020) Downloads
Working Paper: A Safe Harbor: Wealth-Income Ratios in Switzerland over the 20th Century and the Role of Housing Prices (2020) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kof:wpskof:20-487

Access Statistics for this paper

More papers in KOF Working papers from KOF Swiss Economic Institute, ETH Zurich Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2021-09-12
Handle: RePEc:kof:wpskof:20-487